What is your view on purchasing power parity pricing?

Question

Most of the SaaS products are still not accessible to 85% of the internet users worldwide due to the low purchasing power of their country.

A few companies like Spotify, Netflix, and Slack offer geographical pricing. But, still, most of the companies/creators don't offer it.

I'd really love to understand your view on this, as I'm building a tool that automates the whole process of setting up PPP pricing.

Sachin · Accepted Answer

@tejas_rane

Thanks for the feedback Tejas,

Yes, you are absolutely right. Depending on the product type, we need to consider the CAC when deciding the pricing for each geographical region. But, offering PPP pricing also helps you increase your sales volume significantly.

Tejas Rane · Answer

I completely agree with PPP.

I just hope many saas software goes with PPP. Ofcourse, the CAC comes into the picture too.

If your CAC is almost the same and you are breaking down your revenue with PPP, that might be a very uncomfortable revenue situation.

What is your view on purchasing power parity pricing?

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